The English Version of IRB Tax Audit Framework 2013

TAX AUDIT FRAMEWORK
INLAND REVENUE BOARD
MALAYSIA Effective date: 01 April 2013
1. INTRODUCTION
1.1 A fair, transparent and equitable tax administration system will enhance
public confidence in the tax system. Compliance with tax laws must be
strictly enforced and tax offences such as non-compliance and tax evasion
should be penalized in accordance with the provisions of the Income Tax
Act 1967 (ITA).
1.2 Under the Self-Assessment System, tax audit is a primary activity of the
Inland Revenue Board of Malaysia (IRBM). It is aimed at enhancing
voluntary compliance with the tax laws and regulations. A taxpayer can
be selected for an audit at any time. However, it does not necessarily
mean that a taxpayer who is selected for an audit has committed an
offence.
1.3 This framework is issued by IRBM to ensure that tax audit is carried out in
a fair, transparent and impartial manner. This framework outlines the
rights and responsibilities of audit officers, taxpayers and tax agents in
respect of a tax audit. Generally, this framework aims to:
1.3.1 Assist audit officers to carry out their tasks efficiently and effectively;
and
1.3.2 Assist taxpayers in fulfilling their obligations.
2. STATUTORY PROVISIONS
2.1 The provisions of the ITA which are applicable to tax audits are as follows:
2.1.1 Section 78: Power to call for specific returns and
production of books.
2.1.2 Section 79: Power to call for statement of bank
accounts, etc.
2.1.3 Section 80: Power of access to buildings and documents,
etc.
2.1.4 Section 81: Power to call for information.
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